6.14 Forward exchange contracts
Receivables and payables arising from forward exchange contracts are translated into Baht at the rates of exchange ruling on the balance sheet. Gains and losses from the translation are included in determining income. Premiums or discounts on forward exchange contracts are amortised on a straightline basis over the contract periods.
6.15 Foreign currencies
Foreign currency transactions incurred during the year are translated into Baht at the rates ruling on the transaction dates. Assets and liabilities denominated in foreign currency outstanding at the balance sheet date are translated into Baht at the rates ruling on the balance sheet date.
Exchange gains and losses are included in determining income.
6.16 Financial instruments
The Company and its subsidiaries have significant financial instruments carried in the balance sheet which include cash and cash equivalents, trade accounts receivable, investments, trade accounts payable, and short-term and long-term loans. The Company and its subsidiaries entered into off-balance sheet derivatives for hedging commodities’ price risk. At the end of period, the change of contract’s fair values are recorded in shareholder’s equity and recognised as a part of material cost when the materials are consumed.
6.17 Use of accounting estimates
Preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions in certain circumstances, affecting amounts reported in these financial statements and related notes. Actual results could differ from these estimates.
รายงานประจำปี 2550 141 ANNUAL REPORT 2007